Galderma initially purchased a large quantity of oil and it had...

Galderma initially purchased a large quantity of oil and it had the potential at the time to expand greatly from just acne OTC to atopic dermatitis and other highly prevalent skin disorders as an approved RX drugs, and this was a view shared by both Santalis / TFS management and the Galderma management at that time. Galderma and other major pharmaceutical companies in US, Europe, and Asia still have the potential to take a big proportion of oil produced from the Quintis plantations particularly if the RX trials for eczma and psoriasis and HPV progress to phase 3 which we understand Santalis management remain confident of achieving. Clearly neither Santalis/ TFS management at the time had a crystal ball that you may have regarding the subsequent change of the entire Galderma management team dealing with Benzac, and the subsequent purchase by Galderma of Proactiv the largest OTC acne brand in the world. Regardless of the potential expressed by management the objective fact remains that Galderma was never a take or pay contract something which was disclosed and well known (so orders depended on the success of Benzac sales), and the actual sales to Galderma were never material to the company’s earnings in any financial year, and nor were they forecast in any official forecasts to be material in any financial year. The company’s sales and revenues were in the past, and still remain much more highly leveraged to plantation sales and wood and oil sales to other customers than Galderma. As mentioned earlier we believe Santalis still has considerable value (several hundred million dollars) which can be unlocked through a trade sale or IPO in the next 18 months.